AI-focused holding company Beacon Software has raised $250 million USD in a Series B round to acquire and modernize profitable “Main Street” software and services businesses using artificial intelligence.
The round was co-led by General Catalyst, Lightspeed Venture Partners, and D1 Capital, with participation from BDT & MST Partners, Instacart CEO Chris Rogers, Sator Grove, and existing backers such as Amar Varma (Mantle) and Fidji Simo (OpenAI Applications CEO and Shopify board member). The all-equity round brings Beacon’s total funding to $335 million and values the company at $1 billion.
Founded in 2024 by Nilam Ganenthiran (former Instacart President) and Divya Gupta (former Sequoia Capital Partner and Databricks engineer), the company’s mission is to embed AI across traditional industries—from education and logistics to finance and recreation—by acquiring smaller, profitable firms and equipping them with a unified AI software stack.
“The companies best positioned to help Main Street transition from a digital world to an AI world are the ones people already know and trust,” said Ganenthiran, Beacon’s CEO. “In the future, where AI makes competence a commodity, the true currency will be trust. We’re empowering the businesses Main Street already depends on with AI tools that make them smarter, faster, and more resilient.”
Buying, upgrading, and holding — not flipping
Unlike private equity firms that buy and sell companies within a few years, the company takes a long-term approach, acquiring businesses “to hold them forever.” Its model focuses on technology-driven growth, not cost-cutting or short-term optimization.
Each acquired company continues to operate independently, with access to Beacon’s shared AI platform, product design, and go-to-market infrastructure. The goal is to provide small, specialized software firms with enterprise-grade tools and capabilities usually reserved for large tech companies.
“Beacon is the anti-private equity firm,” Ganenthiran said. “We’re not chasing exits — we’re building enduring businesses powered by AI.”
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A growing portfolio across North America
Since its launch, Beacon has acquired or partnered with dozens of companies, including:
- Let’s Camp (Saskatchewan) – an online campground booking platform
- PowerUp (Toronto) – a digital sports registration and club management tool
- Viefund (Ottawa) – back-office software for mutual fund dealers
More than 30% of Beacon’s portfolio is Canadian, with additional businesses spanning education, finance, logistics, and recreation sectors. The company currently acquires one new firm every two weeks on average.
Beacon’s ecosystem already serves thousands of enterprise customers, supports hundreds of thousands of workers, and reaches over one million users. While specific revenue figures were not disclosed, Ganenthiran confirmed that Beacon’s overall operations are profitable.
Building an AI powerhouse across continents
The fresh capital will fuel further acquisitions and expand the firm’s centralized AI engineering and technology teams in Toronto, San Francisco, and New York. The company’s advisory network includes senior leaders from Instacart, Meta, OpenAI, and Shopify, who guide portfolio companies on product, data, and scaling strategies.
“Beacon’s approach is rare — it’s patient, deeply technical, and focused on long-term impact,” said one of the lead investors. “They’re transforming how AI integrates into the real economy, not just the tech sector.”
About Beacon Software
Founded in 2024, Beacon Software is an AI-powered holding company that acquires and grows profitable software and service firms serving the “Main Street” economy. By equipping established businesses with modern AI infrastructure, Beacon helps them scale efficiently and compete in the next era of intelligent technology. The company is headquartered in Toronto with teams in San Francisco and New York
